<p>You mentioned Dave Ramsey - so you know he’s not for credit cards. You don’t need to build your credit rating, that’s just not true. If you need a loan they will do a manual check on you, you’re just not making it super easy for them. </p>
<p>I see so many bankruptcy filings every week at my business, I’d say most people don’t pay off their balances every month. I’d say most people spend more using a credit card than just using cash.</p>
<p>He can build up an emergency fund of cash - bam! there’s his back up.</p>
<p>you bet…I was bored this past winter and entered the CC game…wife and I pocketed over $4k in cash and still have over 300k points in a 2 month span.</p>
<p>In regards to kids and CCs, I would have them get a card just to establish credit. Also, put kids as authorized users to help their credit from a young age. Doesn’t mean you have to give them the card.</p>
<p>Yes, I just love Dave Ramsey, though I am convinced he has a credit card and doesn’t use the envelope method he preaches. My husband wants to call him up, tell him how we juggle credit cards for points/miles/cash, low interest rate for real estate, and hear him scream. Though it really does work for us, we’re cheap and we like the freebies and the lowest interest. Hate paying interest for anything. I think often he is preaching to the masses of whomever is listening, but not to the individual he is talking to.</p>
<p>He will make his own choice, no worry there. Definitely strong arguments on both sides. One of my dear family members got in serious credit card debt by overspending, and it was such an anchor over their lives, just weighing them down. If he doesn’t want to do it, no problem, but it does sound wise to at least move much of your money out of your checking account into savings, just in case someone rips off your ATM card.</p>
<p>“you bet…I was bored this past winter and entered the CC game…wife and I pocketed over $4k in cash and still have over 300k points in a 2 month span.”</p>
<p>Wow, I’m impressed. You have me beat. Geeps, you are the master of the cc shuffle.</p>
<p>I’ve always lived within my means and always pay my credit card bills in full every month, so I don’t equate credit cards with debt - just convenience and reward points/cash back. I have been teaching my kids the same things, as well as how to save and invest. I know some people have trouble with debt, but that would not keep me from using them. It’s one of those personal decisions.</p>
<p>Actually, lacking a credit history was cited by several landlords as the main reason why they wouldn’t rent nicer apartments with low/reasonable rents to me or other friends in the same situation, especially in an era when most college graduates had 4 or more years of positive credit history from getting a credit card from freshman year of college. </p>
<p>I also know several landlord friends I’ve met some years later who have said they won’t rent to someone without a credit history as there are plenty of renters with 4+ years good credit history from undergrad onward and it isn’t worth the risk from their perspective. </p>
<p>Moreover, not having a credit history will mean much higher interest rates on other items like home mortgages from what I’ve heard from friends who work in real estate sales or law…especially in a high demand area with plenty of buyers with long history of good credit history.</p>
<p>Does it help improve credit score paying down student loans after college? If student loans from undergraduate school are in deferment while attending graduate school, how is credit worthiness affected while the loans are deferred?</p>
<p>" He should absolutely move most of his money to a savings account. That’s a good idea, regardless of the credit card decision."</p>
<p>I always thought people moved it out of their checking to their savings for that extra two cents per year interest payment, now I realize it is because of the ATM aspect.</p>
<p>When we moved back to the states from Germany the mortgage folks and the car loan folks did not think we had good credit because our credit card was German. I think having a credit card, even if you don’t use it, is useful. We taught our kids to pay off their cards in full every month and they have had no problem going overboard. They both order books and games online and it certainly is much easier with a card. Our kids got cards when they went to college - they had pretty low limits the whole time they were in school.</p>
<p>True. However, if one comes from a low-income or lower-middle class family where credit use/loans weren’t used very much or worse, poor credit history…having a first credit card is a good way to build up credit quickly…provided it is used wisely and balance is paid off on time each month. </p>
<p>Back when I was an undergrad, credit card companies were so easy with credit cards they’d sign up 17-18 year olds sight unseen back then. </p>
<p>What other alternatives would you propose for an undergrad or fresh college grad to build credit considering they may have had only a few summer/part-time jobs and didn’t take out loans due to FA/scholarships?</p>
<p>Just popping in to say that this thread gently reminded me that I should get a credit card soon as I’m going to be a senior in college and have NO credit to speak of.</p>
<p>I applied last night online with WF since I’ve had my checking account there since I was 16 (and it was Wachovia back then). I got approved right away for $1,200, which was surprisingly high IMO. I plan on using it to buy groceries and pay it off each month. </p>
<p>I’ve been meaning to build up credit for the last year and my debit card has been a little annoying this summer.</p>
<p>Credit card preferred for car rental and hotels since they will put “a hold” in an amount which exceeds anticipated charges until the final bill is settled. Whether the amount would exceed any limits, I don’t know.</p>
<p>Last year, I got over $5K in cashback plus 2 plane tickets and 2 red carpet passes through credit cards, all with ZERO finance charges and ZERO penalties. I was happy to have the extra cash and two plane tickets!</p>
<p>D doesn’t use CCards much, as her expenses are pretty limited at this time. S travels a lot and finds the CCard very useful for his various reservations and payments. It helps give him a nice paper trail for reimbursements as well, which his employer needs for accounting.</p>
<p>I feel very uncomfortable carrying large sums of cash. H doesn’t trust ATMs. I don’t really enjoy balancing checkbooks. We find credit cards work well for us and give us nice perks for using them. We have gotten several thousand dollars back from the extended warranties from the credit cards and untold amounts for being able to decline collision damage waivers and get free luggage with one card.</p>
<p>Of course CCards aren’t for everyone, but responsibly used can be very convenient. :)</p>
<p>Thanks, BusDriver! Is my crown and scepter in the mail? </p>
<p>I admit, I love the little things I can get from using credit cards responsibly, but I do try to pay cash or check instead for merchants I like and am trying to help keep down their overhead costs. Our mechanic says he pays 5 digits just in credit card charges every year! That seems like a lot or money, so I try to pay him via check and he really seems to appreciate it (but we will pay with credit card if we don’t have the checkbook handy).</p>
<p>I know that credit cards DO add to the cost of business, but I don’t feel like this trend will end any time soon and there are costs of other financial transactions, so I don’t stress about it.</p>
<p>A few of the interesting things I used a credit card for:
Funded a retirement account and had it rolled over into a ROTH IRA;
Funded part of the purchase of a van and got back 1% cash;
Funded part of the purchase of a van and got interest free for xx months (can’t remember whether it was 6-9-18 months, but it was long enough for me to come up with the cash to pay it in full);
Paid for tuition for kids and got cash back or points, depending on what I needed more at the time;
Paid for photovoltaic system and got cashback, 2% for the entire cost of the system;
Paid for 2 computers and 2 netbooks with CCards and got back full price when repair evaluators declared all unrepairable under extended warranty period;
6a. S’s retainer that accidentally went through washing machine and dryer and was broken and D’s new glasses that fell into the ocean were all reimbursed under the 90 days loss insurance that came free with CCard purchases;
Paid for hard drive that was declared unrepairable within extended warranty period and got full refund from different CCard; and
Cancelled trip due to illness & volcanic eruption and got $600 trip cancellation fees refunded by CCard company.</p>
<p>This is in addition to getting several free plane tickets and free first bag checked with credit cards. Those are the main things I’ve enjoyed from credit cards.</p>
<p>Interesting about paying tuition with CC. Neither of my kids’ colleges would accept them. I thought it would be a great way to get a little back in points… but, alas, no.</p>